Netflix Makes Good on That Previewed Price Increase

Netflix is beginning the price increase that it announced during its latest earnings report.

New U.S. customers of the service’s streaming video plan will see a $1 increase, from $7.99 a month to $8.99. It’s the first price increase since 2011. When previewing the hike in April, Netflix said existing customers would be exempt for some period of time. That window will be two years, the company said Friday.

The details of the increase were delivered to inboxes in an emailed titled “Thanks for Being a Netflix Member”:

In order to continue adding more movies and TV shows, we are increasing our price from $7.99 to $8.99 for new members. As a thank you for being a member of Netflix already, we guarantee that your streaming plan and price will not change for two years.

The price increase, which was previewed as being a dollar or two, is happening in Europe and the U.K., too. (When converting currencies, a euro and a pound are more than $1, hence the dollar or two.) Netflix isn’t making any changes to its other business of mailing DVDs to homes, a spokesman said.

The move comes at a time when Netflix has committed to spending billions on programming, including original shows like “House of Cards” and newer technologies like 4K video quality. The streaming service counts 34 million subscribers in the U.S., surpassing rivals like HBO.